Investment in Unconsolidated Joint Ventures

12 Months Ended

Dec. 31, 2013

Investment in Unconsolidated LLCs [Abstract]

Equity Method Investments Disclosure [Text Block]

Investment in Unconsolidated Joint Ventures

The Company has periodically partnered with other land developers or homebuilders to share in the cost of land investment and development through joint ownership and development agreements, joint ventures, and other similar arrangements. For such joint venture arrangements where a special purpose entity is established to own the property, we have determined that we do not have substantive control over any of these entities; therefore, they are recorded using the equity method of accounting. The Company's maximum exposure related to its investment in these joint venture arrangements as of December 31, 2013 is the total amount invested of $37.8 million, consisting of $35.3 million which is reported as Investment in Unconsolidated Joint Ventures on our Consolidated Balance Sheets, and a $2.5 million note due to the Company from one of the unconsolidated joint ventures (reported in Other Assets). Included in the Company's investment in unconsolidated joint ventures at both December 31, 2013 and December 31, 2012 were $0.8 million of capitalized interest and other costs.

The Company evaluates its investment in unconsolidated joint ventures for potential impairment on a quarterly basis. If the fair value of the investment (see Notes 1 and 3 of our Consolidated Financial Statements) is less than the investment's carrying value, and the Company determines the decline in value was other than temporary, the Company would write down the investment to fair value.

Summarized condensed combined financial information for the unconsolidated joint ventures that are included in the homebuilding segments as of December 31, 2013 and 2012 and for the years ended December 31, 2013, 2012 and 2011 is as follows:

Summarized Condensed Combined Balance Sheets:

	December 31,
(In thousands)	2013		2012
Assets:
Single-family lots, land and land development costs (a) (b)	$	73,069	$	60,086
Other assets	2,972		(232		)
Total assets	$	76,041	$	59,853
Liabilities and partners’ equity:
Liabilities:
Notes payable	$	8,022	$	10,436
Other liabilities	4,041		324
Total liabilities	12,063		10,760
Partners’ equity:
Company’s equity (a) (b)	32,103		24,265
Other equity	31,875		24,829
Total partners’ equity	63,978		49,093
Total liabilities and partners’ equity	$	76,041	$	59,853

(a) For the years ended December 31, 2013 and 2012, impairment expenses and other miscellaneous adjustments totaling $10.4 million and $12.5 million, respectively, were excluded from the table above.

(b) For the year ended December 31, 2013, the table above excludes the Company's investment in joint development arrangements for which a special purpose entity was not established, totaling $13.5 million.

Summarized Condensed Combined Statements of Operations:

	Year Ended December 31,
(In thousands)	2013		2012			2011
Revenue	$	2,909	$	—		$	—
Costs and expenses	1,763		15			18
Income (loss)	$	1,146	$	(15	)	$	(18	)

The Company’s total equity in the income (loss) relating to the above homebuilding unconsolidated joint ventures was $0.3 million for 2013 and less than ($0.1 million) for 2012 and 2011.